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Assume x and y are the only two goods a person consumes. If after a rise in px, the quantity demanded of y decreases, one could say
a. The income effect dominates the substitution effect. b. The substitutions effect dominates the income effect. c. It is still impossible to determine whether the substitution or income effect dominates. d. None of the above.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Vulnerability Analysis
Find out average fixed costs when the firm produces 50 widgets per day. Find out average total and variable costs for producing 49 widgets.
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Indicate whether each of the following statements is true or false and explain why.
Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
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